By Tim Knight
As usual, Fed Day gave us quite a ride. The big news was that our friends at the FOMC plan to give us another 3 rate hikes this year instead of 4. Guess how many Fed meetings there are with accompanying press conferences left this year? Three. How about that.
My stomach went into a knot the moment the news came out, because everything – – EVERYTHING – – went against me big time. It didn’t last though. Just imagine how many people were short the utilities and got stopped out, all because of a stupid, multi-second Fed spike.
I remain cheerfully – – and massively – – short the XLU by way of a bigger options position than I’ve ever had on anything in my life. It’s simply a gorgeous setup.
The ES roared higher too, but was beaten down in no time at all. Even at its most mentally-retarded peak, it failed to even tag its broken trendline. The uptrend is broken, and Powell couldn’t save it.
The same is true for the once almighty NASDAQ as well, which was slower to fail, but thanks to Facebook, failed nonetheless. Today’s mega-rally was a fart in the wind. Meaningless.
For myself, I have 54 different short positions, 52 of which are in the green. The 2 losers are a cat’s whisker away from being in the green as well. Now that we’ve got this idiotic Fed nonsense out of the way, we can focus on trading again. I’m relieved.